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A combination of the lingering COVID-19 pandemic and the end of an eviction moratorium is causing a spike in bankruptcies, a leading Pittsburgh bankruptcy attorney has revealed.
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Bryan P. Keenan, the founder of Bryan P. Keenan & Associates, PC, said that while filings had dropped from March 2020 as government aid packages had kicked in to keep businesses and individuals trading, those same programs were now coming to an end. The expectation is that bankruptcy filings will begin to climb as urgent debt relief is sought.
His observations come as legal research firm Epiq revealed that new bankruptcy filings had jumped in March 2022 compared to February the same year but remained below last year's numbers.
The number of new commercial and consumer bankruptcies filed in March grew 33.5% over the month prior, with consumer filings rising by 34% and commercial cases hitting a 26% spike.
Worryingly, small business bankruptcy filings, called subchapter V cases, a new type of filing that came into effect in February 2020 under the Small Business Reorganization Act, saw 81 cases in late March, the highest weekly total ever.
Keenan said many factors were also coming into play for bankruptcies, ranging from supply chain issues, inflation and interest rate pressures to worker shortages and now the end of the eviction moratorium.
However, for the latter, the Consumer Financial Protection Bureau has put in place new rules to curb foreclosure. He said that a mortgage company could not foreclose unless the borrower had been behind for over 120 days.
Keenan explained that filings for Chapter 7 release the debtor from paying unsecured debts, such as credit card and medical bills. In contrast, a person qualifying for Chapter 13 will be required to pay back what they owe over a three-to-five-year period.
Filing for Chapter 7 bankruptcy will remain on your record for ten years, while a chapter 13 filing will be on your credit record for up to seven years.
He said: "There are many reasons and influences for a filing from the smallest, such as personal circumstances like the loss of a job, to supply chain challenges that could leave a business high and dry without cash.’’
"Whatever the reasons, a person facing bankruptcy should seek rapid and informative advice from a bankruptcy attorney who can potentially guide them on their next step" affirmed Keenan.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Bryan Keenan
Email: Send Email
Organization: Bryan P. Keenan & Associates
Address: 993 Greentree Rd #101, Pittsburgh, PA 15220
Phone: 412-922-5116
Website: https://bryankeenanattorney.com
Release ID: 89076857
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